Topic: Why is burning coins good - page 2. (Read 1159 times)
In theory when the supply of coins in the market is high the price decreases. This decrease on the price will not recover unless the supply in the market will be reduced. And that burning seems to be a better option being implemented to reduce the supply of the coins in the market circulation. It gives us impression then that when the supply is reduced through burning the price of the coins becomes higher.
It greatly affects the price. The community is very happy with the burning event because it makes the assets of the project have less supply and are getting more expensive, without reducing the amount of their investors' assets. This means that it is an instant pump. This technique is also very effective for creating hype easily. The project will soon rise again after burning.
The Reason Behind Coin Burning may be because of Increase Value of Coins Bitcoin had a Proof_Of_Work (POW) where Miners can burn bitcoinBTC, for example, to earn another coin. Similarly, there is a Proof_Of_Burn {POB) mechanism Whereas such Coins following POB consensus have to burn token for actively managing on the blockchain
A SHORT ANSWER WILL BE
IT DEPENDS.
if a coin is Following POB algorithm then it had burning mechanism at fixed times. This is a good to the token holders the token they are holding is definetly going on the right direction but on the other hand
If a coin burning only happening to increase token market value only than it's not good
A SHORT ANSWER WILL BE
IT DEPENDS.
if a coin is Following POB algorithm then it had burning mechanism at fixed times. This is a good to the token holders the token they are holding is definetly going on the right direction but on the other hand
If a coin burning only happening to increase token market value only than it's not good
when they burn coins, one of them can affect many investors who are interested in their platform to trade, less supply and higher opportunities just to upgrade coins, especially if we only talk about good projects, for example with Binance, they continue to burn and looks good .
I believe that every coin/token burning will create a new sensation and provide enormous opportunities.
I believe that every coin/token burning will create a new sensation and provide enormous opportunities.
Burning proves that devs. want to seriously increase the price and certainly prove that the devs. not making dumps by selling cheap, burning is certainly a good thing and makes investors believe that coins are getting scarcer and demand will continue to increase so the price will also skyrocket.
This is a process by which cryptocurrency miners or developers get rid of a certain amount of tokens by sending them to addresses that are not accessible to anyone. The burning of coins is being implemented not because of the low viability of the project, but rather because of the desire of the creators of cryptocurrencies for great prospects.
Simply put, the burning of coins can create a shortage in the supply of these coins and by using the burning method of the project development team, they hope that the coin price will be more valuable and can maintain the stability of the coin price, currently the burning feature has become one of the features that are often used by developers who aim to deflation the value of the coin.
Burning is now one of the Crucial parts among all coins. I researched many coins price increase so high When burning news come out through twitter. Specially Binance and top coins price goes high with news. With burning all extra coins fund Removed permanently. Its used for decreasing the total supply.
All meme coins use this burn system to make hype in market and many coin Are success due to big burning mechanism.
For example, one of these projects decided to burn tokens immediately and not later. Based on their research, they concluded that in this way the value will increase immediately. I read the documentation and it will be interesting to see whether this solution is correct or not.All meme coins use this burn system to make hype in market and many coin Are success due to big burning mechanism.
The ease of making coins and tokens certainly makes anyone able to make coins and tokens with the amount he likes, even now when they see developments they are by increasing the amount or stock, with the burning technique of course we can get a better price, because most of the prices of coins or tokens new very cheap.
Everything is also not easy, sir, all need the process too.
There must be a risk too, what if something bad happens with the new token or coin situation.?
What's more, if the coin or token is still new, of course investors will also think long before choosing exceptions such as BTC, ETH, BNB.
I think the burning of coins has a good and bad side. If the coins have a limited supply then it's quite good and "they" say that it will increase the price but for the coins/ token that are billions of supply it's just hype especially for those new projects.
It's a scheme. They are implying your coins are worth more automatically but it's not true it still relys on demand which they can generate. People think burn half the coins and it will be worth double. But if you burn half the coins in something that has little to no value anyway does it really mean anything? The worst are the projects that start by just burning coins. Lol. Rediculous.
Exactly. Just because coins are burned, doesn't mean they're going to increase in price. Demand is what matters most, and without it, crypto projects will be doomed to failure. I've seen many scarce cryptocurrencies fail in the long run because of the lack of demand. Developers should focus on increasing mainstream adoption on their projects than simply changing monetary policy. BNB is one of the few cryptocurrencies on the market which constantly burns its supply, and provides real use cases to the mainstream world. You just have to choose the "good apples" from the "bad ones". As long as you choose your coins wisely, you'll have nothing to worry about. Just my opinion
Coin burning like this has been happening for a long time, many have experienced success and some have not had any effect, because actually burning a coin will only function properly if there is an increase in demand for the coin which is supported by a reduced supply of coins in circulation, increasing scarcity. and the increased demand will increase the price of the coin.
The purpose of burning tokens carried out by developers is to reduce supply circulating in the market, with a decrease in their tokens, it is very possible for the token price to be more valuable and have the opportunity to have the best price on the market. thus the tokens that are burned will increase the number of fans.
Recently, many projects have announced the burning of coins, but not everyone understands what this means.
This is a process by which cryptocurrency miners or developers get rid of a certain amount of tokens by sending them to addresses that are not accessible to anyone. The burning of coins is being implemented not because of the low viability of the project, but rather because of the desire of the creators of cryptocurrencies for great prospects.
Thus, the developers are trying to reduce the total number of available coins, while the created shortage affects the growth of their value.
The burning of coins can talk about the upcoming expansion of the project and a possible increase in its value. For example, after the recent announcement of a collaboration between Polygon and Newscrypto, the latter announced that they decided to burn $ 10M worth of NWC tokens this year. Consequently, in the near future, we can see a significant growth of NWC price on this news. What do you think about burning coins? Does this really affect the market value of the coins?
This is a process by which cryptocurrency miners or developers get rid of a certain amount of tokens by sending them to addresses that are not accessible to anyone. The burning of coins is being implemented not because of the low viability of the project, but rather because of the desire of the creators of cryptocurrencies for great prospects.
Thus, the developers are trying to reduce the total number of available coins, while the created shortage affects the growth of their value.
The burning of coins can talk about the upcoming expansion of the project and a possible increase in its value. For example, after the recent announcement of a collaboration between Polygon and Newscrypto, the latter announced that they decided to burn $ 10M worth of NWC tokens this year. Consequently, in the near future, we can see a significant growth of NWC price on this news. What do you think about burning coins? Does this really affect the market value of the coins?
It's a scheme. They are implying your coins are worth more automatically but it's not true it still relys on demand which they can generate. People think burn half the coins and it will be worth double. But if you burn half the coins in something that has little to no value anyway does it really mean anything? The worst are the projects that start by just burning coins. Lol. Rediculous.
Coin burning aims to reduce their supply on the market, with a reduced and limited number of tokens making the token price easier to pump up, and the purpose of burning is a mechanism to maintain price stability, as ethereum and binance have done in recent months, the price has skyrocketed tremendously. maybe this mechanism will be carried out by other project developers to improve the quality and quantity of their projects,
One of the main reasons coin burning has gained popularity recently is that it allows cryptocurrencies to begin at low prices and then artificially enhance their value after people invest. Because of the low price, a new cryptocurrency might begin with 1 trillion tokens for a fraction of a cent and attract investors. Later, the creators can raise the price by burning billions of tokens.
By permanently removing coins from circulation, it increases the value of the remaining coins in circulation. Because people's needs are increasing, while the supply of coins is limited so the price offered can increase to get these coins. Coin burning carried out by developers is of course to increase and stabilize the valuation of coins and tokens. These coins are used to pay service fees known as gas fees. Imagine if the number of coins in circulation is getting rarer, while the need is increasing, then people will scramble to get these coins at a higher price offer.
Burning, in my opinion is done for a number of reasons : (1) When a new coin is at its early stage , after the sale/pre-sale, the coins that are not purchased as well as the coins not mapped out for a particular purpose are burned so as to gain trust from the public as well as improve the value of the coin. By doing this the public will trust that the coin will not be dumped 8n the future.
(2) People will view the coin as viable and worthwhile to purchase because the project team is creating scarcity. (3) The value of the coin could appreciate following the law of supply and demand
Burning of coins/tokens, in my opinion, can be performed when there is need for it - if the team hopes that such activity can improve the coin/token adoption,purchase and popularity.
(2) People will view the coin as viable and worthwhile to purchase because the project team is creating scarcity. (3) The value of the coin could appreciate following the law of supply and demand
Burning of coins/tokens, in my opinion, can be performed when there is need for it - if the team hopes that such activity can improve the coin/token adoption,purchase and popularity.
actually the purpose of this burning is so that coins are limited in the market, of course the circulating supply will also decrease and be limited so that it can reduce the potential for inflation.
This burning returns to the mechanism of related crypto companies in order to maintain price stability, among them there are those who burn 15 times per 3 months like Binance did so that the price of the coins jumps up to a dozen times...
Actually, there are many reasons to burn coins/tokens, and that is in accordance with the motivation of the project developer. whose end goal is as I mentioned him above.
This burning returns to the mechanism of related crypto companies in order to maintain price stability, among them there are those who burn 15 times per 3 months like Binance did so that the price of the coins jumps up to a dozen times...
Actually, there are many reasons to burn coins/tokens, and that is in accordance with the motivation of the project developer. whose end goal is as I mentioned him above.
like the on the first page does. the burn coin is become marketing right now some memcoin burn their coin to vitalik address, but not all the coin to be burned worth 500hundred token of meme maybe worth of couple of buck with supply of billion and some of it burn via dev address its mean the token itself never enter the circulation never be traded right
In deed burning is a good practice from marketing point of view to increase price by reducing supply of tokens/coins to attract more investment but recently we have witnessed lot of new Meme projects being launched with huge supply ( Trillions of tokens) to attract buyers at extremely low price. These meme coins have no use case but still newbies in crypto buy them with idea to get rich quick. The management of these projects later announce burning mechanism as a strategy tool to refrain investors from selling. This is abuse of burning mechanism.
Burning coins is simply an application of a Law of supply and demand, the more token or coin supply circulating the more the value of coin becomes lesser. I don't know the other reason for burning tokens other than the need to sustain the current market value so that it will not drop to a minimum level but to reach another ATH. So far one of the examples I can relate to this is the SLP, the in-game token minted on the famous NFT game Axie Infinity, this game has a lot of players which reach a million players every day and the minted token every day is also reached millions but the case is there is no other effective burning strategy other than breeding fee, so the more the token circulating the lesser the value of the token.
originally this practice was used to decrease the quantity of existing altcoins and therefore maintain or raise its price, value but currently i do not know how useful this method is given the continuous unpredictable fluctuations of all markets
In deed burning is a good practice from marketing point of view to increase price by reducing supply of tokens/coins to attract more investment but recently we have witnessed lot of new Meme projects being launched with huge supply ( Trillions of tokens) to attract buyers at extremely low price. These meme coins have no use case but still newbies in crypto buy them with idea to get rich quick. The management of these projects later announce burning mechanism as a strategy tool to refrain investors from selling. This is abuse of burning mechanism.
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